German car makers push Indonesia

Volkswagen, Europe’s largest car maker, will beef up its business in Indonesia with a new factory in West Java ready to operate in mid-2013, according to VW’s Indonesian partner Garuda Mataram.

The German car maker is reportedly investing $140 million into the plant which is supposed to produce transporters and multivans.

VW has been present in Indonesia as a partner of Garuda Mataram for several years which has been assembling Audi models for the local market. With the new factory, VW’s production capacity will rise to 5,000 units from 1,000 units per year until 2015.

The local vehicle assembly operations are being set up as a first step towards the long-term development of ASEAN markets as part of its 2018 growth strategy, VW said.

The plans envisage expanding market share in the ASEAN region beyond Indonesia and establishing VW throughout the region. It is intended to broaden the product offering to include further vehicles from the VW, Skoda, Audi and Volkswagen Commercial Vehicles brands.

The automotive sector has increasingly moved on the radar of German companies that are looking for investments in Indonesia, Jan Rönnfeld, Managing Director of the German-Indonesian Chamber of Industry and Commerce, told Inside Investor at the Economist Indonesia Summit 2013 in Jakarta on February 28.

Daimler AG of Germany has also chosen Indonesia – together with Thailand – as the first assembly locations in ASEAN for the SUV model series M and GL-Class.

Mercedes-Benz sees strong growth potential in Indonesia, according to the president and CEO director of Mercedes-Benz Indonesia, Claus Weidner.

“Our decision indicates that the investment climate in Indonesia is conducive to the growth of our business,” Weidner said.

Volkswagen, Europe’s largest car maker, will beef up its business in Indonesia with a new factory in West Java ready to operate in mid-2013, according to VW’s Indonesian partner Garuda Mataram.

The German car maker is reportedly investing $140 million into the plant which is supposed to produce transporters and multivans.

VW has been present in Indonesia as a partner of Garuda Mataram for several years which has been assembling Audi models for the local market. With the new factory, VW’s production capacity will rise to 5,000 units from 1,000 units per year until 2015.

The local vehicle assembly operations are being set up as a first step towards the long-term development of ASEAN markets as part of its 2018 growth strategy, VW said.

The plans envisage expanding market share in the ASEAN region beyond Indonesia and establishing VW throughout the region. It is intended to broaden the product offering to include further vehicles from the VW, Skoda, Audi and Volkswagen Commercial Vehicles brands.

The automotive sector has increasingly moved on the radar of German companies that are looking for investments in Indonesia, Jan Rönnfeld, Managing Director of the German-Indonesian Chamber of Industry and Commerce, told Inside Investor at the Economist Indonesia Summit 2013 in Jakarta on February 28.

Daimler AG of Germany has also chosen Indonesia – together with Thailand – as the first assembly locations in ASEAN for the SUV model series M and GL-Class.

Mercedes-Benz sees strong growth potential in Indonesia, according to the president and CEO director of Mercedes-Benz Indonesia, Claus Weidner.

“Our decision indicates that the investment climate in Indonesia is conducive to the growth of our business,” Weidner said.